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OAO EvroSibEnergo and China Yangtze Power Signed Agreement on Joint Development of Hydroelectric Projects

OAO EvroSibEnergo and China Yangtze Power Signed Agreement on Joint Development of Hydroelectric Projects

On October 11, 2010 in Beijing OAO EvroSibEnergo, the biggest private energy company in Russia, and China Yangtze Power Company, the biggest public hydroelectric corporation in China signed an agreement on cooperation in the hydroelectric power industry. The document was signed by Andrey Likhachev, the Chairman of OAO EvroSibEnergo Board of Directors, and Cao Guangjing, the Chairman of China Yangtze Power Board of Directors.

OAO EvroSibEnergo and China Yangtze Power agreed on researching the possibilities of the joint development of projects in Russia including the modernization of OAO EvroSibEnergo hydroelectric assets and new HPPs construction. Joint projects have the key targets of satisfying the growing demand on energy in Russia, organizing the export of energy from Siberia to the northern and north-western provinces of China which is possible due to the Russian-Chinese Intergovernmental Agreement as of 2006. The parties also agreed on coordinating the necessary support from the regulating organizations and distribution companies of Russia and China.

Under the signed agreement OAO EvroSibEnergo and China Yangtze Power will define the list of priority joint projects and will later sign separate agreements on the development of each of them. Moreover, the parties agreed on initiating the process of technological exchange in the area of hydroelectric power.

“We are pleased to see the biggest hydroelectric power company of China as our partner. Russia (Siberia in particular) where a serious growth in energy demand is projected, owns unique hydroelectric resources (which are renewable, environmentally safe and do not emit CO2) but uses them only at the 20% capacity. I am sure that the cooperation in resource use of OAO EvroSibEnergo and China Yangtze Power will invest greatly in the development of economies of Russia and China and will consolidate their cooperation in the power industry”, Andrey Likhachev, the Chairman of OAO EvroSibEnergo Board of Directors said.

“The joint projects of China Yangtze Power and OAO EvroSibEnergo in the area of hydroelectric power provide new possibilities for the further cooperation in the power industry of our countries. They are also strategically important and have a big economic potential taking into consideration the energy demand growth in China”, Cao Guangjing, the Chairman of China Yangtze Power Board of Directors pointed out.

Companies’ profile

OAO EvroSibEnergo (www.eurosib.ru) is the biggest private energy company in Russia and it is owned by En+ Group. OAO EvroSibEnergo controls 14 power stations with the total capacity of 19.5 GW. More than 15GW of it are produced by large HPP of the Angara-Yeniseysk cascade (Krasnoyarsk, Bratsk, Ust-Ilimsk and Irkutsk HPPs). It also controls the coal fields with the total deposit of 1.2 bln tons, sales and engineering companies. In 2009 the power stations of OAO EvroSibEnergo produced more than 82 bln kWh, which equals 9% of energy in Russia.

China Yangtze Power Company (www.cypc.com.cn) is the biggest public hydroelectric company in China. It manages the HPP cascade at the Yangtze River including the world’s biggest HPP, The Three Gorges. The company is controlled by the Three Gorges State Corporation. Company’s shares are quoted at the Shanghai Stock Exchange.